CITY OFFICIALS DIFFER ON STATION REPORT

Ken O'BrienCHICAGO TRIBUNE

Both sides of a City Council debate on building a Metra station say a new audit on spending for the project backs their position.

Last month, aldermen requested the audit because they disagreed about spending on a condemnation suit to gain the Driscoll family's farm to build a Metra station and 500-car parking lot. Four aldermen and the mayor favor the project while four aldermen oppose condemning the land. The city has won the right to the land, but the Driscoll family's appeal is pending.

Tom Ottenhoff, a partner in the Palos Heights-based auditing firm Harper and Ottenhoff, told the council this week that the city had spent $802,149 on the project through Dec. 31, 1994. The city issued $1.5 million in bonds for the project in 1991 and launched its suit in 1992.

Ottenhoff said when interest generated from the money in the bank is considered, the net expenses for the project would only be $621,678. The city had $878,322 in the bank when 1994 ended, he said.

Through 1994, the city had spent $335,067 to pay interest accrued on the bonds and had spent $293,252 on legal fees, including land acquisition and bonding costs, Ottenhoff said.

Mayor Bonnie Strack said the audit shows that the station can generate a "positive cash flow." Ald. Jim Murphy, who opposes the project, said the audit shows that the station "is going to lose money for years to come."